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Warrants over glove makers remain in the spotlight

The third week of August saw the overall warrants turnover dropping by 9.7% to RM930.5mil, largely due to a shortened trading week in conjunction with Awal Muharram on Thursday. Warrants over Malaysian shares remained the major contributor to the total warrants turnover for the week making up approximately 95.2% of total warrants turnover at RM885.8mil, followed by warrants over the Hang Seng Index with RM38.0mil (4.1%) and other index warrants which made up the balance.
macquarie structured warrants 20200914

The third week of August saw the overall warrants turnover dropping by 9.7% to RM930.5mil, largely due to a shortened trading week in conjunction with Awal Muharram on Thursday. Warrants over Malaysian shares remained the major contributor to the total warrants turnover for the week making up approximately 95.2% of total warrants turnover at RM885.8mil, followed by warrants over the Hang Seng Index with RM38.0mil (4.1%) and other index warrants which made up the balance.

Despite it being a holiday shortened week, warrants over glove makers Supermax Corporation and Top Glove Corporation still dominated the warrants space. Trading interests remained high especially after both names posted a sharp rebound on Tuesday to recoup most of their previous week’s losses. Supermax and Top Glove ended 22.2% and 17.6% higher for the week respectively, buoyed by aggressive buying activities.

With the steep surge in prices and trading interests in the underlying, call warrants SUPERMX-C1A and SUPERMX-C1D were both the second and third most actively traded warrants last week with up to 72.6mil and 59.8mil units traded respectively. SUPERMX-C1A was also the top warrant by value with up to RM93mil in total traded value. Other popular warrants were TOPGLOV-C87 and SUPERMX-C97 which occupied the fourth and fifth spots in the most active list with 59.4mil and 55.9mil units traded, respectively.

Meanwhile on the foreign front, the Hang Seng Index (HSI) futures saw yet another choppy week. The spot month August futures kicked off the week with an upbeat momentum but lost its steam to tumble a total of 2.6% from Wednesday through Thursday, only to bounce 1.6% on Friday, finishing the week little changed at 25,069.0. The volatile week saw the put warrant HSI-HAT topping the most active list with a total 72.7mil units exchanged hands despite it being close to expiry. This warrant along with 5 other HSI warrants will expire on Friday, 28 August 2020 with the last trading date on Wednesday, 26 August 2020. Other HSI warrants that were also actively traded by investors were call warrants HSI-C9U (expires October 2020) and HSI-C9T (expires August 2020).

Top warrants by volume traded:

Warrant nameVolume
(mil.)
IssuerExercise level/priceExpiry date
HSI-HAT72.7Macquarie24,20028 Aug 2020
SUPERMX-C1A72.6CIMB9.0029 Jan 2021
SUPERMX-C1D59.8CIMB22.0026 Feb 2021
TOPGLOV-C8759.4CIMB26.0026 Feb 2021
SUPERMX-C9755.9Maybank7.8826 Feb 2021

If you have any questions or need further assistance, please do not hesitate to contact us via our hotline at 03-2059 8840 or email us at [email protected]

To view the full list of structured warrants available on Bursa Malaysia, kindly visit malaysiawarrants.com.my

Provided for Malaysian residents information only. This commentary has not been reviewed by the Securities Commission Malaysia. It is not an offer or recommendation to trade and is not research material. Past performance is not indicative of future performance. You should make your own assessment and seek professional advice.

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